Futures are down slightly afters selling off more than 11 points from the overnight highs on the S&P contract.

Asian and European markets are mixed, but the latter has given up most of its gains from earlier in the trading session.

1200 will continue to be the rally-cry for both the bulls and bears.

While the bulls managed to close above the 20-day moving average, the 10-day has been acting as additional resistance.

The inability to hold overnight highs, and if the bulls cannot push through 1200 early on in today's trading session, will be a very bad sign for bears and could lead to an another sell-off in the market.

Thursday and Friday's strength should not be perceived as anything more than a dead-cat bounce at this juncture.

This is what it boils down to...a break below 1189 on the S&P will be a strong indication we are putting in a 'lower-high', which isn't a total game changer, but a break of 1173 over the coming days is - as it would establish a new downtrend with a 'lower-low in place'.

For the bulls, the 1200 price level and the 10-day moving averages must be retaken. Anything else will be indicative of failure.